Yorkshire business leaders say Spring Statement falls short of what is needed

Business leaders in Yorkshire and Humber said the Chancellor’s Spring Statement has not gone far enough to combat the cost of living crisis.

While praising some of the measures revealed yesterday, they warned smaller businesses and struggling households remain too exposed to the harsh impact of soaring energy and food prices.

Henri Murison, director of the Northern Powerhouse Partnership, said: “There’s lots to like, including tax cuts for businesses, but the statement still falls short of what is needed for Michael Gove to deliver genuine levelling up or for a green industrial revolution to achieve energy security.

“That said, the VAT cut for energy saving materials such as solar panels is welcome, as is the apprenticeship levy review – which is a chance to help more young people find skills and training opportunities by reforming how the levy is shared across the supply chain.

“One glaring omission was the Shared Prosperity Fund, with no extra money announced to match previous EU funding as promised in the 2019 Conservative Manifesto.

“This is a huge concern given that the bulk of regional economic development cuts are likely to be in the North, as we previously received the most while we were in the EU.”

Mayor of South Yorkshire Dan Jarvis, didn’t pull any punches in his response, saying the Chancellor has not done enough to help the most vulnerable.

Dan Jarvis

“Food, fuel, energy and travel costs are all spiralling out of control,” he said.

“Some of the measures announced will help alleviate the pain but not for those in greatest need. People on lower incomes and the most vulnerable in society will be left wondering how they’re going to keep the lights on and put food on the table.

“The Government hasn’t just failed to help our communities through the hardship of today, they’ve also failed to help South Yorkshire plan for tomorrow.

“We were hoping to be given clarity on our allocation of EU replacement cash – the UK Shared Prosperity Fund – but instead we got nothing.”

West Yorkshire Chamber of Commerce head of policy & representation, Mark Goldstone, said the statement was a missed opportunity to rebuild the economy and restore business confidence.

While he welcomed the cut in fuel duty, he warned it does not off-set cost-of-living increases bearing down on firms and households.

Goldstone added: “Smaller businesses, in particular, are exposed as they have neither the protections or financial support provided to households, nor the negotiating power of larger businesses.

“The measures in the Spring Statement don’t go far enough for what businesses needed to see today.

“There are some positive announcements but those high cost pressures remain largely unaddressed.

“As the economic outlook is likely to get worse before it gets better, many firms will be forced to continue raising prices, further fuelling the cost-of-living crisis.

“While the increased employment allowance provides a small amount of financial headroom for firms facing rising costs, other measures – such as the introduction of an SME energy price cap – would have helped to tackle the escalating crisis to the cost of doing business.”

Martin Hathaway

Mid Yorkshire Chamber of Commerce managing director, Martin Hathaway, had a mixed reaction, saying he and his colleagues were disappointed the planned National Insurance rise is going ahead.

He said they had asked the Chancellor to consider postponing this by one year.

Hathaway said: “We welcome the fuel duty cut as it is no secret the price of fuel is becoming a major issue for businesses and households alike, which cannot continue with these escalating rates.

“The temporary business rates relief, including the freezing of the business rates multiplier for another year, the establishment of Help to Grow, the extension of the transitional relief for business rates and support of small business schemes are all welcome measures that I am sure will do a great deal to ease the insurmountable pressures facing businesses.

“However, while the reform of research and development tax credits is a great stride to support UK innovation, I am concerned it is only already thriving sectors that will benefit.”